September 02, 2014 11:17
Listed Korean companies saw their revenues and operating profits dwindle in the first half of this year. Second-quarter operating profits posted double-digit declines compared to the first quarter.
The Korea Exchange and Korea Listed Companies Association tallied the consolidated first-half earnings of 439 listed companies and found that revenues fell 0.15 percent compared to the first six months of 2013 to W906.7 trillion, while operating profits fell 11.73 percent to W48.8 trillion.
As a result, the operating ratio, which gauges profitability, fell from 6.08 percent in 2013 to 5.38 percent.
Samsung Electronics, which ranks No. 1 in terms of market capitalization on the domestic bourse, saw both its revenues and operating profits drop due to lagging smartphone sales. Its proportion of the earnings of listed companies also fell.
In the first half of last year, Samsung accounted for 11.87 percent of all sales among listed companies and a massive 40.93 percent of their operating profits. But in the first half of this year, that shrank to 11.69 percent of sales and 36.89 percent of operating profits.
Impacted by Samsung's lackluster earnings, the operating profits of parts suppliers which are listed on the junior Kosdaq fell to around W400 million in the second quarter, a 99.65 percent plunge from W117.6 billion in the previous quarter.
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